Impact and ESG Frameworks: Choosing Among IMP, IRIS+, SDG Alignment
The frameworks proliferate. Picking one and using it consistently matters more than picking the 'best' one.
Key takeaways
- —IMP (Impact Management Project) is broad and decision-oriented.
- —IRIS+ provides standard metrics for cross-investment comparison.
- —SDG alignment is communication-friendly but operationally vague.
- —TCFD focuses on climate-related financial disclosures.
An office adopting impact investing is quickly buried in framework choice. IMP gives a five-dimension framework (what, who, how much, contribution, risk) suited to investment decision-making. IRIS+ provides a metric library that lets impact be measured comparably across asset classes. SDG alignment maps investments to UN Sustainable Development Goals — useful for communication, harder for measurement. TCFD focuses specifically on climate-related financial disclosures.
The pragmatic move is to pick one framework as primary, document the choice in the impact policy, and use it for every decision in that sleeve. Comparing frameworks endlessly delays action; switching frameworks creates a portfolio with inconsistent measurement. The framework is less important than the consistency. IMP plus IRIS+ as a paired primary is the most common working pattern.
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